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GST impact: Nepal fears major hit on bilateral trade with India

Nepal's exports to India can attract higher taxes post GST

IANS  |  Kathmandu 

Prime Minister Narendra Modi along with his Nepalese counterpart Pushpa Kamal Dahal arrive for a meeting at Hyderabad House in New Delhi
Prime Minister Narendra Modi along with his Nepalese counterpart Pushpa Kamal Dahal arrive for a meeting at Hyderabad House in New Delhi

Expressing concern that the revolutionary (GST) regime adopted by India will adversely impact and transit between and New Delhi, land-locked - majorly dependent on bilateral with India has sought guarantees that the new tax system does not impinge upon existing treaties and accords in this regard.

The Nepali Ministry said on Monday that it has written to India through the diplomatic channel urging that the regime should not impinge upon and transit treaties between the two countries.

"Considering the possible impact on Nepal's with India following the implementation of the GST, we wrote to the Indian authorities to ensure that the new tax system should not infringe on bilateral trade," Rabi Shankar Sainju, Joint Secretary at Nepal's Ministry of Commerce, told Xinhua news agency.

The introduction of the pan-India regime from July 1 has given rise to apprehensions here that Nepal's exports to India could henceforth attract higher taxes.

"After sending the first letter about two months ago, we have also sent another reminder letter about three weeks ago," Sainju said.

officials said their was bound to be affected by India's new tax system as two-thirds of Nepal's international takes place with India alone.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 04 2017. 19:58 IST
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